IFSCA, through Consultation Paper Notification No. IFSCA-FMPP0BR/1/2024-Banking/2026-27/01 dated August 12, 2026, has sought public comments and suggestions on proposed amendments to the IFSCA Banking Handbook – General Directions. The proposed amendments follow supervisory assessments concerning requirements for Governing Body meetings and staffing of IFSC Banking Units (IBUs). The draft proposes that IBUs ensure at least two quarterly Governing Body meetings are held physically in the IFSC, while members located outside India may participate through video conferencing. It also proposes that IBUs appoint and maintain Approved Individuals as CEO/Head–IBU, Compliance Officer and, subject to specified thresholds, Risk Officer. A Risk Officer would be required where outstanding advances or total investments exceed USD 2.5 billion, or the derivatives portfolio has notional turnover exceeding USD 5 billion during the previous financial year. The Risk Officer would report administratively to the head of the IBU and functionally to the Governing Body. The proposed amendments also provide for such other roles or functions as IFSCA may direct. Comments are invited by September 1, 2026, in MS Word or MS Excel format. The draft circular is proposed under Sections 12 and 13 of the IFSCA Act, 2019 and is stated to come into force with immediate effect.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Notification No. IFSCA-FMPP0BR/1/2024-Banking/2026-27/01 | Dated: August 12, 2026
Consultation paper on proposed amendments to the IFSCA Banking Handbook on General Directions
Objective:
1. The objective of this consultation paper is to seek comments/views/suggestions from the public on the proposed amendments to the ‘IFSCA Banking Handbook – General Directions’.
Background:
2. Para 3 (Governing Body) of Module 2 (Governance Directions) of the IFSCA Banking Handbook – General Directions (V 5.0) requires the Governing Body of an IBU to meet at least once every quarter. Further, para 3 of Module 3 (Controlled and Designated Functions) of the said Handbook specifies the positions in respect of an IBU that are required to be held by an Approved Individual at all times.
3. Based on the results of supervisory assessments of IBUs with respect to compliance with the above requirements, it is felt that detailed specifications for compliance with the said requirement may be warranted.
4. Accordingly, it is proposed to undertake suitable amendments to the IFSCA Banking Handbook – General Directions. The proposed amendments are set out in the circular placed at Annexure I to this consultation paper.
5. The general public and stakeholders are requested to forward their comments/suggestions on the proposed circular, by e-mail to Mr. Lobhas Khairnar, Manager, IFSCA at [email protected] and Mr. Nishil Ramit Patel, Consultant, IFSCA at [email protected] on or before September 1, 2026, in the format given below. The comments may be provided in MS Word or MS Excel only.
Format for providing comments / suggestions:
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Annexure I
DRAFT CIRCULAR
To,
All IFSC Banking Units (IBUs)
Madam/ Sir,
Subject: Amendments to the IFSCA Banking Handbook – General Directions
1. Reference is drawn to the International Financial Services Centres Authority (Banking) Regulations, 2020, and the circulars/directions issued thereunder, in particular the directions contained in the IFSCA Banking Handbook – General Directions- V 5.0 in relation to staffing requirements and Governing Body meetings.
2. In this regard, it has been decided to amend the aforementioned directions as under:
A. After point no. 4 of para 3 of Module no. 2 titled “Governance Directions”, the following point shall be inserted, namely:
“5. IBUs shall ensure that at least two (2) quarterly meetings of the Governing Body are held in physical mode in the IFSC:
Provided that where any member(s) of the Governing Body is located outside India, such member(s) may participate in such meetings through video conferencing.”
B. For sub-point (a) of point (i) of para 3 of Module no. 3 titled “Controlled and Designated Functions”, the following shall be substituted, namely:
“The Banking company shall make the following appointments with respect to an IBU and ensure that they are held by an Approved Individual at all times:
i. CEO/Head – IBU;
ii. Compliance Officer;
iii. Risk Officer – who shall report to the head of the IBU administratively and to the Governing Body functionally, and be responsible for, inter- alia, overseeing the IBU’s risk management function and ensuring that risks are properly identified, assessed, and managed:
Provided that the Risk Officer shall be appointed by an IBU in case of the following circumstances:
I. outstanding advances of the IBU exceed USD 2.5 Bn, or its equivalent in any specified foreign currency, as on March 31st of the previous financial year; or
II. total investments of the IBU exceed USD 2.5 Bn, or its equivalent in any specified foreign currency, as on March 31t of the previous financial year; or
III. derivatives portfolio with notional turnover of the IBU exceeds USD 5 Bn, or its equivalent in any specified foreign currency, during the previous financial year;
(iv) such other role or function as the Authority may direct from time to time.”
3. This Circular is issued in exercise of powers conferred by Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, and shall come into force with immediate effect.
4. A copy of this Circular is available on the website of the International Financial Services Centres Authority at ifsca.gov.in.
